Vietnam’s trade surplus expands

The structure of goods exports has improved in a positive direction with the increasing exports of processed industrial products. (Photo: VietnamPlus).

Hanoi (VNA) - In 2019, Vietnam had 32 items with export turnover of more than 1 billion USD, of which eight posted over 5 billion USD and six over 10 billion USD, contributing to the expansion of trade surplus.

Rising exports, well-controlled imports, and trade surplus maintained for the fourth consecutive year were notable outcomes in 2019.

Record trade surplus 

According to the Ministry of Industry and Trade, the country’s trade turnover reached 516.96 billion USD in 2019, a year-on-year rise of 7.6 percent.

Of the figure, the total export turnover was estimated at 263.45 billion USD, up 8.1 percent from the previous year, higher than the targets set by the National Assembly and Government (7-8 percent).

In 2017, the trade turnover was only about 400 billion USD. After two years, Vietnam surpassed 500 billion USD, according to Deputy Minister of Industry and Trade Do Thang Hai, adding that this is an impressive figure and encouraging outcome of the Vietnamese economy in 2019.

More importantly, Vietnam’s export scale has been continuously expanded. Notably, in 2019 the country had 32 items with export turnover of more than 1 billion USD, of which eight posted over 5 billion USD and six over 10 billion USD.

Vice versa, the import turnover rose 7 percent year-on-year to reach 253.5 billion USD. This means Vietnam ran a trade surplus of 9.94 billion USD, the highest level so far.

Truong Thanh Hoai, head of the Industry Department under the Ministry of Industry and Trade, said 2019 recorded the first time when products of the processing and manufacturing sector saw a trade surplus of nearly 100 million USD, a positive sign showing the competitiveness of made-in-Vietnam industrial products.

The Ministry of Industry and Trade holds a conference to review its performance in 2019 and launch tasks for 2020. (Photo: VietnamPlus).

Promoting advantages of processing, manufacturing industries

According to the ministry, the remarkable outcomes were attributed by the negotiation work to open the market.

The 16 signed free trade agreements (FTAs), including 12 taking into effect, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), have opened up new markets and facilitated Vietnam’s export activities.

Vietnam’s exports to some CPTPP markets in 2019

To promote the outcomes, the ministry will implement effective solutions and policies to promote restructuring the industry towards increasing added values and focusing on particular sectors such as mechanics, automobile and support industry as well as map out development orientations and issue policies to maintain Vietnam’s position in the global arena in the fields of garment-textiles, footwear, wood processing, automobile and electronics.

The ministry will explore export markets via newly signed free trade deals, ensure equal business environment, and stabilise the domestic market.

Over the past time, the ministry promoted cooperation with international organisations and multinational groups to improve policy-making capacity and competitiveness for local enterprises.

Minister Tran Tuan Anh said the ministry is actively implementing a project restructuring the industry and trade to create highly competitive products in the regional and global market as well as help businesses join intensively the global value chains.

The ministry is also improving policies to support domestic production and develop support industry, while increasing the rate of localisation and gradually removing difficulties for businesses.

Minister of Industry and Trade Tran Tuan Anh emphasises the need to reduce administrative procedures and support businesses and people.

In 2020, the ministry has set out some targets. For example, the industrial production (IIP) will expand by 9-10 percent year on year. The total export turnover is expected to increase by 7-8 percent against 2019. The total retail sales of goods and services will rise by 11.8-12 percent./.